We’ll be taking a stroll down memory lane in today’s intraday charts update since we’ll be checking up on our old setups on AUD/USD and AUD/JPY. Of course, it goes without sayin’ that we’ll be lookin’ for fresh play as well.
Way back on August 21, that there ascending channel on AUD/JPY’s 1-hour was only a potential ascending channel because the pair was milling about at 86.30 and had to move higher and test the would-be channel’s resistance area in order to confirm the chart pattern.
And as y’all can see, the pair did push away from 86.30 and ultimately ended up validating the ascending channel. So if you were gangsta enough to go long on the pair while gunning for the 87.50, then congratulations on bagging some decent pips. Aww, yeah!
Anyhow, the freshly-minted ascending channel is still intact so today’s play is to play the channel again. Pretty straightforward, right?
Just note, however, that bearish interest at 87.50 seems strong, so there’s also a chance f0r a downside channel breakout, and y’all may wanna prepare for such a scenario as well.
A downside channel breakout ain’t confirmed until the pair smashes past 86.30 and then 85.80 on strong bearish momentum, though.
Back on Monday a few days ago, we identified a symmetrical triangle pattern on AUD/USD’s 1-hour chart that y’all can still see right there. And back then, we didn’t have a directional bias. However, I did point out that an upside breakout was more likely.
Well, check that out, dawg. That’s right! The pair did break to the topside.
And if you were able to jump in with a long at the breakout point, or at the area of interest at 0.7960 that I told y’all to watch, then congratulations on bagging some pips.
Anyhow, we’re cautiously bullish on the pair because the pair has yet to break past 0.8040. And while there’s a chance that the pair may continue moving higher, that chance seems slim at the moment since stochastic is already signaling overbought conditions and all that.
However, if we take the most recent price action into account, we can see that a fresh ascending channel has formed. And presently, the pair is at the channel’s resistance area, so the chance for a pullback is higher.
And if there’s a pullback, then the pair will likely be heading towards the channel’s support area, which should be at or just below 0.7960.
In any case, just make sure to remember to practice proper risk management, a’ight? Also, keep in mind that there’s always a small chance for a downside channel breakout, so y’all may wanna think about bailing yo longs of the pair clears 0.7880 and then 0.7820.